07 DEC 2017: The global airline industry is on track for a record net profit next year, nearly half of which will go to US carriers. The International Air Transport Association (IATA) has revised up its 2018 forecast, saying 'these are good times for the global air transport industry.'  

Earlier this year IATA estimated a combined profit of US $31.4 billion but has now forecast a rise in net profit to US $38.4 billion.

Of that, despite a slight drop in market share, US airlines are expected to post a combined net profit of US $16.4 billion.

"North American airlines have generated more than half of the industry's profits produced in the past three years, but rising cost pressures have slowed further improvements," the IATA report said.

European airlines will make about US $11.5 billion and Asian carriers US $9 billion.

"Employment is growing. More routes are being opened. Airlines are achieving sustainable levels of profitability. It's still, however, a tough business, and we are being challenged on the cost front by rising fuel, labor and infrastructure expenses," said IATA CEO Alexandre de Juniac.

"To continue to deliver on our full potential, governments need to raise their game-implementing global standards on security, finding a reasonable level of taxation and delivering smarter regulation."

IATA's membership represents more than 80 percent of global air traffic.

 

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